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Wage, Income and Consumption Inequality in Japan, 1981-2008: from Boom to Lost Decades

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Author Info

  • Jeremy Lise

    ()
    (University College London)

  • Nao Sudo

    ()
    (Bank of Japan)

  • Michio Suzuki

    ()
    (University of Tokyo)

  • Ken Yamada

    ()
    (Singapore Management University)

  • Tomoaki Yamada

    ()
    (Meiji University)

Abstract

In this paper we document the main features of the distributions of wages, earnings, consumption and wealth in Japan since the early 1980s using four main data sources: the Basic Survey on Wage Structure (BSWS), the Family Income and Expenditure Survey (FIES), the National Survey of Family Income and Expenditure (NSFIE) and the Japanese Panel Survey of Consumers (JPSC). We present an empirical analysis of inequality that specifically considers the path from individual wages and earnings, to household earnings, after-tax income, and finally consumption. We find that household earnings inequality rose substantially over this period. Inequality in disposable income and in consumption also rose over this period but to a lesser extent, suggesting taxes and transfers as well as insurance channels available to households help to insulate household consumption from shocks to wages. We find the same pattern in inequality trends when we look over the life cycle of households as we do over time in the economy. Additionally we find that there are notable differences in the inequality trends for wages and hours between men and women over this period. Keywords: inequality trends; life-cycle inequality; wage dynamics.

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File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Lise_Sudo_etal_2013_wage-income-cons_japan.pdf
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Paper provided by Human Capital and Economic Opportunity Working Group in its series Working Papers with number 2013-011.

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Date of creation: Sep 2013
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Handle: RePEc:hka:wpaper:2013-011

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Keywords: inequality trends; life-cycle inequality; wage dynamics;

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Citations

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Cited by:
  1. Tomoaki Yamada & Sagiri Kitao & Selahattin Imrohoroglu, 2013. "Achieving Fiscal Balance in Japan," 2013 Meeting Papers 736, Society for Economic Dynamics.
  2. Ayako Saiki & Jon Frost, 2014. "How does unconventional monetary policy affect inequality? Evidence from Japan," DNB Working Papers 423, Netherlands Central Bank, Research Department.
  3. Yamada, Tomoaki, 2013. "Cross-sectional Facts in Japan using Keio Household Panel Survey," MPRA Paper 49813, University Library of Munich, Germany.
  4. KAWAGUCHI Daiji & MORI Yuko, 2014. "Winning the Race against Technology," Discussion papers 14017, Research Institute of Economy, Trade and Industry (RIETI).

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